The (long) run out of unemployment: are temporary jobs the shortest way?
A higher job creation is a common result by many theoretical approaches trying to model marginal labor market reforms. In the framework proposed by Berton and Garibaldi , in particular, the equilibrium arrival rate of temporary job offers is expected to be higher than the arrival rate of permanent ones. In this paper I use a sample of prime aged male workers from WHIP in a competing risks framework in order to compare the duration of unemployment spells terminated by jobs that only di¤er in their formal duration. I fnd that the arrival rate of fixed term jobs is actually larger than the arrival rate of permanent ones; this result is robust to the main sources of unobserved heterogeneity. However, the average duration of unemployment in Italy is still very high and the liberalization of flexible contracts as a policy to reduce it did not completely solve the problem.
|Date of creation:||2008|
|Date of revision:|
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- Fabio Berton & Pietro Garibaldi, 2012.
"Workers and Firms Sorting into Temporary Jobs,"
Royal Economic Society, vol. 122(562), pages F125-F154, 08.
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- Juan J Dolado & Carlos Garcia--Serrano & Juan F. Jimeno, 2002.
"Drawing Lessons From The Boom Of Temporary Jobs In Spain,"
Royal Economic Society, vol. 112(721), pages F270-F295, June.
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"Estimation of Multinomial Logit Models with Unobserved Heterogeneity Using Maximum Simulated Likelihood,"
Discussion Papers of DIW Berlin
573, DIW Berlin, German Institute for Economic Research.
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IZA Discussion Papers
260, Institute for the Study of Labor (IZA).
- Cahuc, Pierre & Postel-Vinay, Fabien, 2002. "Temporary jobs, employment protection and labor market performance," Labour Economics, Elsevier, vol. 9(1), pages 63-91, February.
- Olivier Blanchard & Augustin Landier, 2001. "The Perverse Effects of Partial Labor Market Reform: Fixed Duration Contracts in France," NBER Working Papers 8219, National Bureau of Economic Research, Inc.
- Matteo PICCHIO, 2006. "Temporary Jobs and State Dependence in Italy," Working Papers 272, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
- Olympia Bover & Ramón Gómez, 2004. "Another look at unemployment duration: exit to a permanent vs. a temporary job," Investigaciones Economicas, Fundación SEPI, vol. 28(2), pages 285-314, May.
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